Facing Taxpayer Revolt, African City Authorities Call in Debt Collectors

by Mike Bevel, CollectionIndustry.com

In an effort to collect more than Z$4.6 billion (US$18.4 million) in back taxes, Zimbabwe capital city Harare is stepping up pressure on residents for payment, setting an Oct. 31 deadline and threatening to interrupt water service, issue court summonses and refer unpaid bills to collection agencies.

The back taxes appear to be a direct result of substandard service. Many Harare taxpayers have been withholding payments for water and other services because delivery has deteriorated so dramatically. Citizens are also using their tax dollars to leverage new municipal elections to restore the city council that was superseded in 2004 by a commission whose members are appointed by the national government. Ruling party members of the city council, however, continue to function under the commission.

The cash-strapped city council said this week that its tax-collection effort will include the issuance of summonses and water shutoffs. The council said that severe cash flow problems have prevented it from providing services at a normal level ? resulting in a veritable catch-22 situation.